Bitcoin was trading close to $20,000 to start the weekend, as traders reacted to comments from U.S. Fed Chair Jerome Powell during Friday’s Jackson Hole summit. Powell warned that “there will be some pain ahead,” as the Fed attempts to bring the rate of inflation down. On Saturday, Ethereum fell below $1500
Bitcoin
Bitcoin (BTC), which traded at $21,000, was lower in the last session.
After a peak of $21,804.91, bitcoin fell to $20,020.94 after falling to an intraday low.
This comes after comments by Jerome Powell, the United States Fed Chair, sent shockwaves through global finance markets.
Powell warned that, “there will be some pain ahead” in upcoming months, as the central bank continues its battle with inflation.
The technical view of the sale was that BTC did not break its $21,600 resistance.
Prices then went on to fall below another key level, this time at support of $20,800, on the way towards today’s low.
The sell-off is now marginally under control, but bitcoin remains at what appears to be an interim level of $20,200.
Ethereum
Like bitcoin, ethereum (ETH) also moved lower on Saturday, as the world’s second largest cryptocurrency fell under $1,500.
Saturday’s drop in ETH/USD to $1,477.67 was its lowest point since July 27th, a day when prices had fallen below $1,400.
Today’s decline comes as ethereum fell below its long-term support level at $1,550, with bears now targeting a floor of $1,450.
Following this week’s downward crossover between the 10-day (red) moving average against its 25-day (blue) counterpart, many had feared that such a decline could occur.
The relative strength index (RSI), which tracks at a low 38.75, has seen price strength drop to a multiweek low.
The RSI, although currently oversold in Ethereum, has not yet reached its support level at 34. Should it achieve this, we may see the token trade below $1,400.
Register here and get price analysis alerts sent directly to your inbox every week.
What do you think about further declines of ethereum in the coming weekend? Comment below to share your views.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.